| Project Detail |
The resources of this technical cooperation (TC) will support the Caribbean Countries Cluster of the IDB (CCB), as they design and execute innovative financial instruments, such as Debt for Climate/Nature and thematic bonds. The idea of the project s to apply lessons and build capacity to expand and adapt to all seven target countries of the ONE Caribbean Program. Innovative climate finance opportunities are essential for Caribbean countries facing increasing debt burdens. One promising avenue is the development of "green and blue bonds", which focus on funding climate as well as ocean-based climate resilience and sustainable marine projects. These bonds can attract private investment and provide new revenue streams while enhancing climate investments and promoting the protection of marine ecosystems. Another opportunity lies in leveraging blended finance mechanisms that combine public, private, and philanthropic funding to de-risk investments in climate adaptation projects. Additionally, debt-for-climate swaps, where a portion of a countrys debt is forgiven in exchange for commitments to climate action, can alleviate fiscal pressures while promoting environmental sustainability. These innovative financial instruments are crucial for enabling Caribbean nations to enhance climate resilience without exacerbating their debt challenges. |
